SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE NO. 15403 / July 2, 1997
SECURITIES AND EXCHANGE COMMISSION v. QUALIFIED PENSIONS, INC., ET AL.,
Civil Action No. 95-1746 (LFO)(D.D.C.)
The Securities and Exchange Commission ("Commission") announced that
the United States District Court for the District of Columbia entered Final
Judgments of Permanent Injunction against defendants Jerry G. Allison
("Allison") and Qualified Pensions, Inc. ("QPI") on June 17, 1997 and June
4, 1997, respectively. As previously announced, the Commission alleged
that QPI and Allison defrauded investors by misappropriating millions of
dollars in retirement savings that were entrusted to QPI by its clients to
be maintained in Individual Retirement Accounts ("IRA") and other
retirement savings plans, and executed securities transactions for their
clients without registering as brokers. Subsequently, the Court-appointed
Receiver of QPI, Robb Evans, has determined that as of September 13, 1995,
the date that this action was filed, there was a shortfall of over $11.4
million in cash that had been on deposit in QPI customer accounts. The
Receiver, among other things, has been pursuing assets misappropriated from
QPI and winding down the business of QPI.
The Permanent Injunction against Allison was entered by default on
motion of the Commission. QPI, by the Receiver, consented to the entry of
a Permanent Injunction against it without admitting or denying the
allegations of the Complaint. The injunctions prohibit both parties from
violating Section 17(a) of the Securities Act of 1933, Sections 10(b),
15(a), and 15(c) of the Securities Exchange Act of 1934 ("Exchange Act"),
and Exchange Act Rule 10b-5, which are the antifraud and broker-dealer
registration provisions of the federal securities laws. The Court reserved
its judgment on the Commission's claims for disgorgement against Allison,
QPI, and The Lynx Land and Mining Company, Allison's alter-ego and a relief
defendant in the action, until the Receiver has completed his efforts to
recover dissipated assets on behalf of QPI's customers and has submitted to
the Court a final accounting of the losses sustained by QPI's customers.
(For further information, see Litigation Release Nos. 14636, 14642, and
14680)
======END OF PAGE 1======